The value of the inputs owned and used by the firm in its own production activity is known as
A) explicit costs.
B) implicit costs.
C) Accounting costs.
D) all of the above.

Question

Quizplus · Accepted Answer

Implicit costs are the costs associated with the use of resources owned by the firm itself, rather than costs involving payments to others (which would be explicit costs). These are not directly outlaid in cash but represent the opportunity cost of using resources in a specific way.

The Value of the Inputs Owned and Used by the Firm